Gone are the days of growth with no consideration for cost and profit. E&P companies that prioritize unconstrained growth have fallen out of favor with investors. Instead, many private equity (PE) firms want sustainable growth -- and returns -- with investment horizons extending beyond 3-5 years. But PE backers aren’t the only one wanting returns; the public markets are shifting in their views as well. Cash flow, which can be used for debt management or returned to shareholders, is now preferred to high-cost, top-line growth.
For companies to address these changing demands, they need to stay profitable while also growing production in shale plays where output per well is not what it used to be. One way to do this is by maintaining capital discipline throughout longer-term drilling and completion programs. In this blog, we will show you how WellEz On Demand, cloud-based well lifecycle reporting software, can help you:
- Protect bottom lines by keeping overhead low.
- Reduce costs with operational efficiency gains.
- Improve ROI when adding top-line revenue with quicker asset onboarding.
1. Onboard New Assets Quickly
Taking over drilling operations on a new asset can be a drag on current performance and put any achieved cost reductions at risk. Whether it’s through expensive implementation and consulting costs or the disruption of daily reporting, you must look at software as a factor in any acquisition process. Our customer success team at WellEz has guided operators through hundreds of acquisition projects and can provide best-practice help along the way. And since WellEz On Demand is cloud-based, you don’t take on any new IT overhead!
Hear from our senior customer success engineer, Brooke Ryan on the 6 most common questions she gets asked during acquisition and divestiture projects in the video below.
2. Understand field costs sooner
One issue operators deal with is not knowing how much a drilling or completion job cost until the final invoices are processed. This ‘not knowing’ affects your ability to make quick decisions on future projects. If your field cost versus actual cost variance is higher than 10%, it could even be the difference between getting a few more wells online before the end of your operational budget. WellEz On Demand allows field personnel to capture and report accurate field cost information that gives an accurate picture of where a project stands versus the AFE. Having this data at your fingertips helps you build better AFE’s going forward, perform more accurate accruals, and create sustainable cost reductions.
See the top 3 ways our customers create sustainable drilling and completion cost reductions in our blog.
3. Grow your business, not your overhead
By using cloud-based software, you can eliminate IT hardware, user license, and maintenance costs that would fall under your capital expenditure budget. Instead, you only pay a monthly subscription that aligns to your operational activity. This billing model moves software costs from a CapEx to an OpEx and allows you to include it in the AFE of each well, thus sharing the cost with partners.
Check out what other operators are saying about why WellEz On Demand is the right choice for modern E&P companies in this case study.
The digital transformation has taken hold in the oil and gas industry, and successful operators are using technology to reduce capital overhead, create sustainable cost reductions, and move quickly into new drilling areas. WellEz On Demand is leading the way with easy-to-use, cloud-based well lifecycle reporting. Get started with our 1-day Test Drive.